Ark. panel advances income, capital gains tax cuts

A House committee has advanced bills to cut Arkansas' income and capital gains taxes as legislative leaders say they're nearing agreement on a $100 million package of reductions that may depend on approving an expansion of health insurance for low-income residents.

The House Revenue and Taxation Committee approved the proposals Tuesday and sent them to the full House. They're among several tax cut proposals that could be part of a package legislative leaders are negotiating.

The income tax cut proposal would cost the state about $57 million a year. The capital tax cut proposal would cost the state $3.1 million next year, but the cost would eventually grow to nearly $28 million.

Gov. Mike Beebe has said a substantial amount of cuts could be funded by the health insurance expansion.